Did you know there is a full week dedicated to helping you, the consumer, make informed decisions, and avoid scams and fraud? Well, there is, and it’s going on right now. National Consumer Protection Week (NCPW) runs through Saturday, March 7, 2015.

Throughout the week dozens of free tips, videos and resources will be available at ncpw.gov.

There are tips on everything from banking, investing to avoiding scams.

For example: Do you have an old computer that’s jam-packed with tons of personal information, and you just don’t know how to get rid of it? No problem, check out the Disposing of Old Computers section.

If you live on the East Coast or in the Midwest, you know first-hand how crazy the weather has been lately. Deep freeze doesn’t even begin to explain it.

Unfortunately, there are crooks out there who use this weather to take advantage of people. Thankfully, NCPW has an entire section dedicated to weather emergencies including information on how to avoid weather-related scams.

If you’re looking for credit related information or education you can always check out Quizzle.com, annualcreditreport.com, or the National Consumer Protection Week’s credit, credit cards and debt section.

For the entire list of NCPW topics, tips and advice visit the NCPW website at ncpw.gov.

The post National Consumer Protection Week appeared first on Quizzle Wire.

What is a secured credit card?

Most credit cards are “unsecured,” meaning you are granted a line of credit when you open a credit card account and are expected to pay off the balance. There is no collateral involved (unlike, for example, a mortgage, in which the property purchased acts as collateral – if you fail to make payments, the property can be seized by the lender).

By contrast, a secured credit card is “secured” because it requires a collateral deposit. Sometimes the deposit is placed in an interest-bearing savings account, and sometimes the deposit does not earn interest. The deposit should remain untouched unless you fail to make payments, in which case it is applied toward the amount owed. The minimum deposit required is usually several hundred dollars. The deposit is refunded to you when you close the account.

In most other respects, a secured credit card is just like a normal credit card. You can use it wherever credit cards are accepted. Interest is charged if you do not pay off the balance in full each month, and a penalty is assessed if you make a late payment. The size of your credit limit is directly tied to the amount of your collateral deposit. Sometimes the total amount deposited equals the credit limit. Other times, the credit limit may be slightly more than the amount deposited.

Most secured credit cards charge an annual fee, the amount of which varies widely. Some secured cards may charge an application fee, a monthly fee, and/or a fee to increase your credit limit.

How a secured credit card can help rebuild your credit

You probably already know that if you have a credit card, paying at least the minimum payment on time is a positive thing for your credit history and credit score. The same applies to a secured credit card. However, when it comes to secured credit cards, it is crucial to ensure that the card issuer reports your activities to the major credit bureaus. Not all secured card issuers make such reports, so it is critical that you check this out before opening your secured credit card account.

The best way to quickly rebuild your credit with a secured credit card is to make a few purchases each month, and pay off the balance in full each billing cycle. Hopefully, it won’t take long to reverse your credit history (although that will depend on the damage you did before you needed a secured card).

How to get a secured credit card

Terms for secured credit cards vary dramatically, and you should be aware that some unethical card issuers try to take advantage of consumers desperate to get a credit card by charging unreasonably high interest rates and/or fees. It goes without saying that you should avoid such issuers, and instead look for a secured credit card that has a competitive interest rate (although hopefully you will pay off the balance in full each month and not have to pay interest). Some secured credit cards even offer benefits, such as rewards for spending.

Not all banks issue secured credit cards, but many reputable financial institutions still do. Start by asking at credit unions you may be a member of since they often have the most favorable terms. Check out Quizzle’s credit card recommendations to find a card that’s right for you.

And, of course, as mentioned above, when choosing a secured credit card, you want to be absolutely certain that the card issuer reports to the major credit bureaus.

The post Rebuilding credit with a secured credit card appeared first on Quizzle Wire.

Of course, my curiosity gets the best of me every time, and I read the articles. But I don’t just read them, I READ them, and then I analyze every single word. For example, one article suggests when it comes to my love life, I’m pretty much a horrible person with the inability to form an emotional connection to anyone or anything. I’m cold, aloof, and unsympathetic. So, if my coldness, aloofness or lack of sympathy ever becomes an issue in my relationship, I can blame it on the fact that I’m an Aquarius. Sorry, honey, it’s not you, it’s my sign.

But, these articles did get me thinking: What does my zodiac sign say about my money habits?

Based on Quizzle.com data, the average credit score of Quizzle Aquarians is 628. While a 628 credit score isn’t horrible, it’s not the greatest either, and lenders may see you as a higher risk. Generally speaking, you may not get the best rates, rewards or cash back products, and you may pay higher monthly premiums.

Research suggests a consumer whose credit score is between 600 and 650 may have the following items on their credit report:
-Missed payments
-High amounts of credit card debt
-Accounts in collections or bankruptcy

My credit score in Quizzle is higher than the Aquarian average, but I’ve worked hard to get it that way. I attribute my score to my frugal way of living and obsession with not carrying balances unless I have to. Personally, I think I’m cheap. I’m always looking for great deals, and I pretty much refuse to buy anything that’s not on sale. I analyze everything I buy based on how much it costs, how much I will use it, how long it will last, and whether it’s timeless (is it going to be out of style in a month or two). My checkbook is always up to date and I know what’s coming in and going out of my bank account each day. My frugal way of living drives my friends and family crazy, but it works just fine for me.

With an average of 641, Sagittarians top the list with the highest credit score in Quizzle. People born under this sign have a reputation for taking risks and they’re known as the luckiest sign of the zodiac. Brad Pitt, Taylor Swift and Mark Twain were all born under this sign. The fact that Sagittarians are risk-takers may mean they’re buying bigger and more expensive items, but as long as they’re managing their monthly payments responsibly, their risky behavior may result in a higher credit score.

With an average of 622, Pisces round out the bottom of the list with the lowest credit score. Perceived as the scatterbrains of the zodiac, Pisces may get easily distracted and forget things. This may mean they’re more prone to bad habits like missing payments and overusing credit cards, which may result in a lower credit score.

Curious to see where you fall in the spectrum? Check out the chart by Quizzle.com below.

The post What does your zodiac sign say about your money habits? appeared first on Quizzle Wire.

Where does the money go?

“I would put on paper, preferably in an Excel spreadsheet, all of my monthly expenses so I can see where my money goes,” says Kyle O’Dell, the president of Secure Wealth Strategies. “Just doing this one task can be eye-opening for most families.”

Many of us have no real idea of what we are spending our money on, so listing out all of our expenses can provide a visual starting point. Even if you don’t use an Excel spreadsheet, the act of listing everything out can be helpful.

Don’t just sit down with your life partner and figure it out, either. “It’s important to teach kids the value of a dollar,” O’Dell says. “They need to understand that there is only so much money to spend on toys or movies or whatever they enjoy doing.”

When you gather the family to see where the money is going, you can identify problem areas. It’s also possible to figure out what your values as a family are. Look at your spending, and determine whether or not it fits with your family priorities and values. A good budget for the coming year starts with a family discussion of what really matters to you. 

Create a budget based on what matters

After looking at where the money goes, and determining what you actually should be doing with your money, it’s time to re-allocate your resources. If you want to pay down debt and save up for retirement, those are the items that should get top billing in your family budget for the coming year.

“You have to learn and condition yourself to pay yourself first each month,” says O’Dell. “Before even one dollar gets spent, you must save money. If you have money, you have control over most situations.” 

One of the difficulties is reconciling differing views of how money should be spent in a family. O’Dell suggests dividing monthly expenses into different categories, and then classifying those categories as needs or wants. “If you are talking about a need such as food, gas for the car or utilities, I think those items are pretty simple and straightforward to agree upon,” he says. 

“Expenses that are beyond needs, such as going out to dinner or a movie, or new clothes, are items that everyone will have different opinions on,” O’Dell continues. “Sometimes it’s not easy to compromise.” 

In order to ensure that everyone has some money to spend as they like, O’Dell suggests an allowance. “As long as the family is saving money and have a plan to get out of debt, I believe everyone should have some type of allowance or money for entertainment,” he says. “This money can be used for anything you want personally. This is your guilt-free, fun money.”

Involving the children in family budgeting is important because it helps them learn about money and compromise, and it gives them a stake in the family finances. Get their suggestions for what the “want” categories can be used for. You can also budget for shared goals, like vacations. Each month, everyone can use part of their “fun” money to put toward the vacation.

You can also use some of your budget to teach your kids valuable lessons about how to use their money. O’Dell says that you can pay part of your child’s allowance in stock to teach them what it means to invest. Show them how their investments grow over time at a rate that’s better than an allowance. While your kids still need cash to learn how to make their own budget decisions, don’t neglect the investing aspect.

Sticking with your family budget

It’s much easier to stick with a family budget when it’s based on your priorities and values. When the whole family is working together, it’s also easier to be accountable. O’Dell likes the idea of envelopes so that families can see what is going on with their money. “I’ve found people are more disciplined when they have cash to spend and see what they need to make last for two weeks,” he says. “It’s easy to pay with plastic and we lose track of our budget too easily if we pay with plastic.”

Even if you don’t want to use cash, you can still track everything. Manually enter credit and debit transactions into personal finance software. At the end of the month, you can sit down as a family and evaluate your progress. Make it a point to “check in” with your budget regularly, and you will be far more likely to stick with it this year — and in years to come.

The post How to create a family budget for 2015 appeared first on Quizzle Wire.

Over the last few years, though, VantageScore has been gaining ground as a credit scoring model. Some see FICO as too opaque and too outdated to accurately reflect the changing habits of consumers in the 21st century. VantageScore aims to offer a scoring model that takes into account more information and hopes to improve accuracy as it relates to gauging a consumer’s ability to handle credit.

Jeff Richardson, a representative from VantageScore Solutions, says that nearly one billion VantageScore credit scores were used in 2014 by more than 2,000 lenders and others in the industry — including six of the 10 largest banks. “This represents a 24 percent increase in the number of users of the VantageScore models and a nearly 600 percent increase in the number of scores used as compared with 2013,” he says. 

So, why is VantageScore gaining in popularity? Part of it has to do with VantageScore’s ability to score more people, and the consistency of the ratings across credit reporting companies, says Richardson. It has wider application and an increasingly wider appeal.

Scoring more consumers

“The VantageScore model can generate a score for 98 percent of consumers with credit files at the three national credit reporting companies,” says Richardson.

How many times have we heard stories about “thin files” that don’t have enough credit information in them for FICO to generate a score? Richardson says that VantageScore’s model values tradeline data as recent as six months old. In fact, Richardson says, “Consumers whose oldest tradeline is less than six months old can be scored after the first tradeline update.”

In a world where no score can be worse than a poor score, VantageScore might be able to provide a little more insight into consumers, even if their credit files are relatively thin.

Consistency in scoring

FICO has a number of different versions of its model available for different uses. Each credit reporting company can use a slightly different version of FICO for scoring, and individual lenders can also use modified versions. FICO also sells versions that are adapted for specific purposes, like car loans or mortgages. This can make it confusing for consumers who aren’t sure which version of FICO is being used.

Richardson says that the same VantageScore model is deployed at all three of the major credit reporting companies. “Use of a common model across the three credit reporting companies improves a lender’s ability to manage risk and a consumer’s understanding of the credit scoring process,” he points out. 

VantageScore recently overhauled its model to be more consistent with what consumers are used to, but even with the overhaul, VantageScore remains fairly consistent. “VantageScore 3.0 uses a scale of 300 – 850, which more consumers are used to,” says Richardson. 

Transparency in scoring 

As part of the launch of VantageScore 3.0, a website called ReasonCode.org was released. When you receive your score, you might see “reason codes” listed nearby. These are numbers that indicate certain items in your credit file that contribute to your score, such as late payments, high credit utilization, or other factors. The idea behind ReasonCode is to translate these numbers into plain English so that consumers can better understand their scores.

“The site allows consumers to search specific reason codes generated from any VantageScore model and receive deeper explanations,” says Richardson. “Consumers also receive specific tips for addressing the credit behaviors that resulted in the reason codes the received.”

Use your VantageScore to improve your finances

Thanks to the transparency in scoring, it’s possible for consumers to look at their VantageScores and determine how to best improve their finances. “Pay attention to your score on a regular basis using resources like Quizzle.com,” suggests Richardson. 

However, he says that your credit score should just be the starting point with your finances. “The score is a representation of the contents of your credit file, so check your files regularly to ensure accuracy.” By digging into your score and your credit, you can identify problem areas in your finances. You can also use your score as a benchmark by which to track your progress. As your financial situation improves, you can monitor it by your score. When you see an unexpected drop in your score, that can be an indication that you need to make a change in your financial habits. 

Richardson points out that there are plenty of resources you can use to learn more about your VantageScore and your finances. “Quizzle offers consumers deep explanations for reason codes and tips for improving your score,” he says. “It’s basically a customized roadmap for credit score improvement.”

Sign up for your free Quizzle account and get your free credit report and score.

The post VantageScore vs. FICO appeared first on Quizzle Wire.

What type of loan are you trying to get?

The requirements for personal loans, such as a mortgage or car loan, will be different from the requirements for a business loan, such as one taken out to purchase a franchise or inventory.

Keep in mind that underwriters for a personal loan will be focused on your net income, based primarily on your tax returns. On the other hand, underwriters for a business loan will be focused on the financial state of your business.

Minimizing Taxes vs. Maximizing Net Income

If you are looking to take out a personal loan, like a mortgage, the bank will be most interested in your income history to determine your ability to repay the mortgage. Most mortgage applicants simply have to provide their W-2 forms for the last couple of years. However, if you’re self-employed, the bank will want to review your income tax returns, and will zero in on one number: your net income.

Your net income is the number arrived at when you deduct expenses from your gross income. Most taxpayers seek to maximize deductions, which minimizes their taxable income. But for self-employed loan applicants, that smaller number may reduce the amount of the loan you are qualified for. You may want to consider whether it is worth foregoing some tax deductions and paying more taxes in order to make it easier to secure a loan.

You’ll need to document your financial history.

For personal loans like a mortgage, be prepared to authorize the lender to obtain your tax returns from the IRS. You may also need to provide bank statements and documents that verify your business, such as your business license and accounting records. The lender will likely look at the average of your last two years of income to determine your income for underwriting purposes. Thus, if you made $70,000 two years ago and $100,000 last year, the lender will presume that your income is $85,000 – even if you are on track to make $100,000 or more this year.

If you have been self-employed for less than two years, you may not be able to obtain a loan, unless you work in the same field as you did two years ago, and have a W-2 form from your previous employer, and the lender is willing to consider your prior employment in the underwriting process.

For business loans, you will need to provide documents pertaining to the business, such as accounting records, profit and loss statements, your business license, and tax returns.

As with all loan applications, make sure your credit history and credit score are accurate. You can obtain both for free at Quizzle.com.

How big is your down payment?

The more you can put down when taking out a loan, the more likely you will be approved. This is because lenders like to see a smaller loan to value ratio, which lowers the risk of lending money. This applies whether you are taking out a mortgage or car loan for personal use or if you want to purchase a business, property, inventory or another asset for your business. Regardless of the type of loan, the smaller the loan to value ratio, the greater the likelihood that your loan application will be approved.

Secured vs. Unsecured Loans

A secured loan is one in which collateral has been pledged to lower the lender’s risk. If the borrower defaults, the lender may seize the collateral and sell it to offset the debt. For example, in a mortgage, the property being purchased is the collateral.

If you are buying a business or asset for your business, the lender may or may not be willing to consider the business or asset as collateral. During the underwriting process, the lender will consider how easy the asset would be to liquidate in the event you default on the loan. If liquidation might prove to be difficult, the lender is less likely to accept the asset as collateral. You may have to consider offering some other form of collateral, such as your home, in order to secure the loan. However, keep in mind that if you are unable to repay the loan, the lender can seize any asset that you have pledged as collateral.

By contrast, there is no collateral pledged for an unsecured loan. If you are able to obtain an unsecured loan for your business, the interest rate is likely to be much higher than the rate for a secured loan because the risk of lending is greater. If you are interested in a business loan, try the Small Business Association’s Loans and Grants Search Tool.

The post How to get a loan when you’re self-employed appeared first on Quizzle Wire.

Unfortunately, many consumers wrongly think that they need a lot of money or need special connections to invest. It’s 2015, and the investment landscape is different from what it was 20 or 30 years ago. Today, the Internet provides widespread access to different investment opportunities.

No matter your level of investment expertise or income, there are opportunities for you to build success through investing. Here are some of the interesting investment choices for 2015: 

Robinhood 

One of the most interesting investment apps to consider in the new year is Robinhood. This trading app focuses mainly on helping investors trade ETFs. There are no account minimums, and there are no trading fees. Basically, with your cash account, you can trade as much as you want domestically without paying any fees. 

How will Robinhood make money? The plan is to make money on margin traders, and traders that focus on foreign trades. If you trade on margin, you will be charged interest on your account, and there are fees associated with certain types of trades that are considered a little more complex or unusual.

For most investors, though, Robinhood makes it easy to trade from your phone, free of charge. Right now, there is a waiting list to participate, but you can sign up for access. It’s important to be aware that frequent trading is rarely a good idea, though. Just because you can trade without paying commissions doesn’t mean that you should trade frequently.

Acorns

Acorns is another investment app aimed at beginning investors who don’t have a lot to start with. With Acorns, you pay either $1 per month (for accounts with less than $5,000) or you pay 0.25% a year (if your account has $5,000 or more). You can put as little as you want in the account, deciding to have a small amount automatically or manually transferred as needed.

You can even get suggestions on portfolio composition, based on your risk tolerance. Your portfolio can be automatically rebalanced, and there are no minimum monthly contributions or account minimums. This is a great option for those who like the idea of Betterment, but can’t quite commit to setting aside $100 every month.

With an account like Acorns, though, it’s important not to become complacent. It’s a great starter investment account for those who only have a few extra dollars a month. However, it won’t result in enough to retire on unless you make it a point to increase your contributions regularly. As you get a raise or pay down debt, you should invest more.

Investment crowdfunding

You’ve probably heard about crowdfunding efforts like Kickstarter and Indiegogo. While these are great places to contribute to projects you like, you aren’t going to see any real financial benefit since these aren’t investing websites. 

One of the recent developments has been the introduction of investment crowdfunding. This takes the concept of crowdfunding businesses but allows investors to buy shares in a company. It’s a way for businesses to raise money through crowds, without turning to angel investors or trying to raise venture capital. It also provides investors who might have a decent amount of money, but not enough to put hundreds of thousands of dollars into a single real estate transaction or business, the chance to invest.

In order to take advantage of investment crowdfunding, though, you need to be an accredited investor. This means that you already need to have substantial assets, or have a reasonably high income. Investment crowdfunding is likely to grow in popularity during 2015 among members of the upper middle class.

MyRA 

The MyRA is a relatively new account introduced not too long ago. It’s a simple way to start investing in relatively safe assets for a tax benefit. There are income restrictions and other eligibility requirements, but it can be useful for certain savers who have been finding it difficult to set money aside in a tax-advantaged retirement account. The returns aren’t as good as investing in the stock market, but for those who can only set aside $5 a paycheck, it can be one way to start. However, as with other low-contribution accounts, you need to find ways to increase your contribution as soon as possible since lower thresholds will never be enough to truly build wealth.

Health Savings Account (HSA) 

Yes, the HSA has been around for some time. However, many people don’t realize that it can also be another tax-advantaged investment account. Once your HSA grows to $2,000, many custodians will allow you to invest the excess in higher-returning assets. You could invest in index funds without too much trouble, boosting your HSA returns. Plus, you get a tax deduction for contributions, and the money grows tax-free for qualified health care expenses.

You do need to meet certain requirements to qualify for the HSA, and there are contribution limits. Check to make sure you are in line with the requirements and find out from the custodian what it takes to invest in index funds.

If you want to try something different with your investments for 2015, chances are that you have opportunities. Do a little research, and realize that anyone can start investing and building wealth for the future.

The post New ways to invest in 2015 appeared first on Quizzle Wire.

So how do you know if you have too much debt? What number is right for your situation? Here’s how to tell how much debt you can reasonably afford, and the number you might not be comfortable with.

Know Your Debt-to-Income Ratio
Depending on what type of budget plan you use, your total debt payments should be no more than around 25-30% of your entire income. Some experts say that your debt-to-income ratio can be as high as 36%, but that’s not something to shoot for. A good way to calculate your personal percentage of debt is to use this simple formula.

The DTI formula is: total recurring debt payments divided by gross monthly income equals your debt-to-income percentage. Check out this simple calculator from Bankrate to see what your custom DTI ratio is.

If you’re saving up to make a big purchase (like your first home) the debt-to-income ratio is a number that lenders will look at and consider before loaning you money. If this figure is too high, you may not be able to afford your dream home — at least until you pay off some of your debts.

Increase Your Income

If you find that your debt is very high in comparison to your income, see what you can do about increasing the amount you bring in each month. Can you take on overtime at work? Are you able to get a second job, or work on nights and weekends? List out 3-5 ways that you can make more money without spending loads more time (yes, it’s possible).

This isn’t a long-term solution so don’t feel like you have to work at maximum capacity for the rest of your life. This strategy is simply something that will help you jump-start paying off debt, and remind you of how hard it was to get back on track financially (so you don’t find yourself in this state again). 

Understand Your Comfort Level

Taking what experts say into consideration is always an important part of being financially successful (they do usually have the experience behind their wisdom), but so is understanding your own comfort level for debt.

Your debt-to-income ratio may fall at a very reasonable 25% but if it doesn’t fit into your money goals, future accomplishments, and life aspirations, then it won’t work. Likewise, you may be OK with more than the recommended amount of debt because it’s helping you reach long-term goals, and you’ve carefully calculated the risks. 

How much debt can you afford?

The answer to “how much debt can you really afford” will be different for everyone. It depends on your income, your priorities, and your goals for the future. I personally strive to have a 0% DTI percentage, but throughout my life that number has been higher than I wanted.

However, through it all I’ve been able to put it into perspective and know that I have the power to change it, and control it going forward. This is something you too will have to determine for yourself, so you know how much debt you can really afford.

The post How Much Debt Can You Really Afford? appeared first on Quizzle Wire.

If you’re planning to buy your Valentine something special Saturday, February 14, you’re not alone. According to the National Retail Federation’s Valentine’s Day Consumer Spending Survey, 91% of people plan to treat their partner to something special on Valentine’s Day.

Consumers will drop some serious cash too. We’re not talking millions, we’re talking billions – $18.9 billion in total spending, to be exact.

Shoppers will shell out money on everything from candy and clothes, to pet items! Yes, pet items. A record one in five people surveyed say they plan to buy something for their pet this Valentine’s Day.

For a closer look at what consumers are buying this year, check out the image below.

For those of you who don’t have the means to splurge all crazy-like this Valentine’s Day (myself included), here are some ideas to help you show your love on a budget.

-Cook a Homemade Meal
-Handmade Valentine’s Day Cards
-Snuggle up next to the Fireplace and Watch a Movie
-Serve up Breakfast in Bed
-Make Hot Cocoa and Go for a Walk
-Hide Love Notes around the House for Them to Find Throughout the Day

If your partner doesn’t love your frugal thoughtfulness, at least your bank account will.

The post INFOGRAPHIC: A Look at 2015 Valentine’s Day Spending appeared first on Quizzle Wire.

In fact, the typical college student in 2013 has “an average $35,200 in college-related debt” (Money) including student loans and credit cards.  That’s a heavy burden for a recent college graduate.

However, it doesn’t have to be this way.  There are plenty of ways that college students can prepare for a brighter financial future.

Live at home as long as possible.  If you attend a college close to home, consider living at home as long as possible.  I know, I know.  Living at home isn’t the cool option, and your freedom might be restricted a bit.  However, living at home can save you a bundle of money.

Imagine the possibilities if you are one of the rare college graduates who leaves college without any student loan debt or very little debt.  The money you make in your new job is yours to do with what you like unlike other students who are paying $300 a month or more on student loans that may not be paid off for the next 10 to 20 years.

If you sacrifice a bit of your freedom and live at home during college, you will have far greater financial freedom when you do graduate and move out on your own.

Accept that money will be tight.  You’re in college.  Money is going to be tight.  Now is not the time to rent an upscale apartment or wear the latest designer fashions.  When you graduate, there will be plenty of time and money to live the type of lifestyle that you desire.

Don’t take out more loans than you need.  Most financial aid packages include a very generous estimation of your living expenses.  If you cut corners financially, you definitely don’t need that much money to live on.  Then, you can take out fewer student loans.

Also, don’t make the mistake of thinking that you should take out all of the student loans you are eligible for because you might need the money.  If the money has been disbursed to you, you’ll likely find a way to spend it.  Only take out student loans for the amount you truly need.

Work a part-time job.  Life in college can be hectic.  You’ll likely have more homework than you’re used to that is harder than you’re used to.  Plus, you want to have time to socialize with friends and relax a bit.  You may think there isn’t really time to fit in part-time work and that it may hurt your academics.  However, research shows otherwise.

“Part-time student employment may have beneficial effects: for example, an on-campus research position may spark a student’s interest in further academic programs or provide important work experience that will improve future labor market prospects.  Working part-time as a student generally appears to supplant only non-productive activities, such as watching television.  In addition, students who work fewer than 10 hours per week have slightly higher GPAs than other similar students” (Brockport).

Contribute to a Roth IRA.  I know, you may argue that there is no money to contribute to a Roth IRA and that you’ll start planning for retirement once you get out of college and get a full-time job.  But the truth is, you probably can find the money.  Maybe one night you don’t go to the bar with friends.  Now, you’ve easily saved at least $10 or $20.  Do this once a month, and put the money in a Roth IRA.

Even if you only contribute $240 a year, or about $1,000 during your entire college career, thanks to compound interest, that money will grow by thousands by the time you’re retirement age.  The biggest mistake a young adult can make is not contributing to an IRA early enough to take advantage of the power of compound interest.

What other financial suggestions do you have for college students?

The post Easy Ways College Students Can Improve Their Financial Future appeared first on Quizzle Wire.